1st Quarter Results
Prudential PLC
21 April 2004
Embargo: 07.00 hrs Wednesday 21 April 2004
PRUDENTIAL PLC FIRST QUARTER 2004 NEW BUSINESS RESULTS
• Total Group insurance and investment sales of £8.6 billion, up 22 per cent
on the first quarter of 2003.
• Group APE (annual premium equivalent) insurance sales of £433 million, up
13 per cent.
• UK and Europe APE insurance sales of £186 million, up 9 per cent.
• Prudential wins membership of Sesame multi-tie panel.
• Jackson National Life's (JNL) total sales of £1.2 billion, up 33 per cent.
• APE sales at Prudential Corporation Asia (PCA) of £125 million up 4 per
cent.
* All comparisons above and the narrative below are quoted at constant exchange
rates. See Notes to Editors for further details.
Prudential's Group Chief Executive, Jonathan Bloomer, commented:
'This is a very positive set of results, reflecting the healthy position in
which the Group ended 2003.
'The UK sales are particularly pleasing given the low level of consumer
confidence in medium and long-term savings.
'The US results are excellent following two years of record retail sales at JNL
and the successful management of JNL's capital last year.
'In Asia, PCA continues to show good growth - some of our newer markets such as
Korea and India performed particularly well, while in Taiwan and Japan our focus
has been on improving the overall profitability of the products we sell. We were
delighted to secure a third life licence in China in the first quarter of this
year.
'The success of Prudential's international diversification was recognised today
when we received the Queen's Award for Enterprise in the International Trade
category, reflecting the outstanding growth in our overseas operations in recent
years.'
UK and Europe Insurance Operations
Prudential UK and Europe had a good start to the year delivering the highest APE
sales for five quarters. Total sales in the first quarter of £1,482 million were
12 per cent higher than the same period in 2003. APE sales were £186 million, up
9 per cent.
APE sales of corporate pensions through the business-to-business channel were up
21 per cent on the comparable period in 2003 to £35 million. This performance
reflects continued success in winning new scheme mandates (up 167 per cent) and
in adding new members to existing schemes (up 23 per cent). An encouraging
number of employers have signed partnership agreements with Prudential UK to
improve financial education for employees in the workplace and we believe this
will deliver significant sales growth in the future.
The continued interest in Prudential's bulk annuities resulted in excellent
sales in the first quarter of this year. Single premium sales of £139 million
were almost double that achieved over the same period in 2003. Individual
annuity APE sales of £45 million were 12 per cent lower than the comparable
period in 2003. This reflects the decision not to chase unprofitable business,
due to the significant increase in price competition over the last six months,
but sales were in line with those achieved in the fourth quarter of 2003.
APE sales of unit-linked and international with-profit bonds of £14 million were
twice the level recorded in the comparable quarter in 2003. This reflects
sustained growth in the sales of these products by intermediaries which were up
on the fourth quarter of 2003 by 13 and 53 per cent respectively. General market
conditions for with-profit bonds remain challenging - IFA sales of with-profit
products contracted by 80 per cent in 2003. APE sales in the first quarter were
57 per cent lower than in the same period last year.
Partnership APE sales, principally protection contracts through high street bank
branches of £19 million, were more than double the comparable period in 2003.
Prudential has been appointed to continue work with Sesame on the detailed
design and delivery of its multi-tie proposition and has secured a place on its
multi-tie panel. Prudential is the first appointed provider and subsequent
appointments will be announced later in the year as a consequence of the work
being undertaken with Sesame. Sesame has over 6,500 IFAs representing
approximately 25 per cent of the UK IFA marketplace. As a result of its
appointment, Prudential is very well positioned to increase its market share.
While this will continue to be a challenging year for the life insurance
industry in the UK, Prudential is cautiously optimistic about its own prospects
due to its competitive advantage as a result of its scale, brand recognition,
financial strength and low cost base.
M&G
Gross fund inflows into M&G and Prudential branded retail products during the
first quarter of 2004 were £357 million, a 22 per cent increase on the same
period last year. Gross ISA fund inflows increased during the quarter, up 4 per
cent to £50 million. While gross sales remain strong, net sales reduced because
of a shift in the retail market away from fixed income, resulting in a net fund
outflow of £7 million over the quarter.
In its institutional business, M&G's first quarter net fund flows were
significantly affected by a single large redemption by a segregated fixed income
client. Institutional fund flows are by their nature volatile and this
redemption reflects a change in strategy by the client. As a result, gross fund
inflows were £365 million during the quarter, with net fund outflows of £879
million. M&G's private finance business continued to develop strongly with the
successful launch of its second leveraged loan Collateralised Debt Obligation,
for which inflows of €375 million will be reported in the second quarter's new
business figures.
Jackson National Life
JNL recorded total sales in the first quarter of 2004 of £1.2 billion, 33 per
cent higher than the same period of 2003, driven by strong sales of variable
annuities and institutional products. Total retail sales of £879 million were
down 2 per cent on the same period of 2003, but 23 per cent ahead of the fourth
quarter of 2003.
Variable annuity sales of £473 million were up 23 per cent on the first quarter
of 2003, reflecting the recovery in equity markets in the second half of 2003
and JNL's strength in product design and distribution. As indicated at the
full-year, the rate of election of the fixed account option within variable
annuities reduced in 2003 and for the first quarter of 2004, 25 per cent of
variable annuity sales went into fixed accounts compared with 48 per cent during
the full-year 2003.
Fixed annuity sales of £332 million were 29 per cent down on the first quarter
of 2003, reflecting the continued low interest rate environment in the US
limiting demand for this product.
Sales of equity-linked indexed (ELI) annuities of £71 million were 83 per cent
higher than the same period of 2003. Regular premium life sales of £3 million
were in line with those recorded in the first quarter of 2003.
Institutional sales for the first quarter of 2004 were £311 million. There were
no institutional product sales recorded in the first quarter of 2003, reflecting
JNL's focus on retail markets, and the active management of its capital position
during last year. Institutional sales are made opportunistically, based on
capital availability and return expectation. The tight spread environment
currently constrains the opportunities for sales of institutional products.
However, JNL took advantage of several attractive issuance opportunities in the
first quarter. Should those opportunities continue to present themselves, JNL
will participate in the market.
At 31 March 2004, funds under management for Curian Capital LLC, JNL's
registered investment advisor channel, had grown to £244 million (US$448
million), up from £148 million (US$266 million) at the 2003 year-end.
JNL has made a strong start to the year. It has actively and successfully
managed its capital position and is well placed as markets in the US continue to
recover.
Prudential Corporation Asia
PCA's insurance new business APE sales for the first quarter of 2004 of £125
million were up 4 per cent on the same quarter in 2003. Excluding Japan, where
the business strategy has been refocused, sales were up 13 per cent.
The improving economic environment and recent growth in Asian stock markets has
also helped increase sales of more profitable unit-linked products. In Taiwan
while absolute volumes of new business were 28 per cent lower than last year,
unit-linked product volumes have more than doubled. Traditional products have
also been re-priced in Taiwan and consequently the average new business margin
has increased significantly.
Both Hong Kong and Singapore grew strongly, with Hong Kong experiencing an
exceptionally strong first quarter APE growth of 41 per cent over last year with
increases in both regular and single premium sales. In Singapore sales of single
premium unit-linked products benefited from improved stock market sentiment
combined with a continued low interest environment. In Malaysia sales were 27
per cent lower than last year but we anticipate a strong second quarter based on
monthly sales trends.
PCA Life Korea continues to demonstrate impressive growth with APE sales in the
first quarter of 2004 of £15 million, up 270 per cent compared with the same
period last year driven by the implementation of its successful multi-channel
distribution model where financial advisers, general agents, direct marketing
and bancassurance all contribute approximately equally to new business.
In the remaining six markets sales were collectively up 45 per cent with India
growing by 164 per cent, China by 57 per cent and Indonesia by 98 per cent
offset by a 26 per cent decline in PCA's 'Other' markets.
PCA's fund management business also benefited from the improved environment with
total investment product funds under management in Asia as at 31 March 2004 of
£6.7 billion up 7 per cent on 31 December 2003 with net inflows of £0.3 billion
for the quarter, improved from net redemptions of £ 0.1 billion for the same
period last year.
In the first quarter 2004, growth in new business achieved profits outpaced
sales growth as PCA focused on higher margin products, particularly in Japan and
Taiwan rather than pure sales volume. With positive political, economic and
investment market factors for the region and PCA's proven strategy of focusing
on sustained profitable growth, we anticipate strong sales growth for the
remainder of 2004.
Egg
Egg has separately announced its first quarter 2004 results today. On 26
January, Prudential announced that it had begun a process that would give a
number of potential purchasers an opportunity to make a proposal which may or
may not lead to a transaction relating to its approximately 79 per cent
shareholding in Egg. This process is continuing.
- ENDS -
Enquiries to:
Media Investors/Analysts
Geraldine Davies 020 7548 3911 Rebecca Burrows 020 7548 3537
Steve Colton 020 7548 3721 Marina Lee-Steere 020 7548 3511
Clare Staley 020 7548 3719
Notes to Editors:
1. There will be a conference call today for wire services at 8:00am hosted by
Jonathan Bloomer, Group Chief Executive and Philip Broadley, Group Finance
Director. Dial in telephone number: +44 (0) 20 8288 4700. Callers to quote
'Prudential' for access to the call.
2. There will be a conference call for investors and analysts at 2:30pm hosted
by Jonathan Bloomer, Group Chief Executive. Dial in telephone number: UK
callers: +44 (0) 20 7162 0183, US callers: +1 334 420 4950. Callers to quote
'Prudential' for access to the call.
A recording of this call will be available for replay for one week by
dialling:
UK: +44 (0) 20 8288 4459, US: +1 334 323 6222, Passcode 700762.
3. High resolution photographs are available to the media free of charge at
www.newscast.co.uk (+44 (0) 20 7608 1000).
4. Sales for overseas operations have been reported using average exchange rates
as shown in the attached schedules. Commentary is given on the results at
constant exchange rates. The two bases are compared in the table below.
Annual premium equivalent sales
Actual exchange rates Constant exchange rates
2004 2003 +/- (%) 2004 2003 +/- (%)
£'m £'m £'m £'m
UK & Europe 186 171 9% 186 171 9%
US 122 105 16% 122 92 33%
Asia 125 133 (6%) 125 120 4%
Total 433 409 6% 433 383 13%
Gross inflows
Actual exchange rates Constant exchange rates
2004 2003 +/- (%) 2004 2003 +/- (%)
£'m £'m £'m £'m
M&G 722 1,184 (39%) 722 1,184 (39%)
Asia 4,909 3,790 30% 4,909 3,452 42%
Total 5,631 4,974 13% 5,631 4,636 21%
Total insurance and investment flows
Actual exchange rates Constant exchange rates
2004 2003 +/- (%) 2004 2003 +/- (%)
£'m £'m £'m £'m
Insurance 2,936 2,546 15% 2,936 2,396 23%
Investment 5,631 4,974 13% 5,631 4,636 21%
Total 8,567 7,520 14% 8,567 7,032 22%
5. Annual premium equivalent (APE) sales comprise regular premium sales plus
one-tenth of single premium insurance sales.
6. Investment mandates previously reported as UK corporate pensions in 2003 are
reported as M&G institutional funds under management. The impact of this is
to reduce UK corporate pensions APE sales by £15 million for the first
quarter of 2003 and by £32 million for the full-year 2003.
7. US institutional products (previously referred to as 'stable value products')
consist of guaranteed investment contracts (GICs), funding agreements and
medium-term notes backed by funding agreements.
8. Prudential's Queen's Award for Enterprise win has been announced in a
separate press release today. This can be found on Prudential's website at
www.prudential.co.uk
9. 2004 Financial Calendar:
Annual General Meeting Thursday 6 May
Payment of 2003 final dividend Wednesday 26 May
2004 Interim Results/ Second quarter New Business Figures Tuesday 27 July
Ex-dividend date Wednesday 18 August
Record date Friday 20 August
Third quarter New Business Figures Tuesday 19 October
Payment of interim dividend Thursday 29 October
Forward-Looking Statements
This statement may contain certain 'forward-looking statements' with respect to
certain of Prudential's plans and its current goals and expectations relating to
its future financial condition, performance, results, strategy and objectives.
Statements containing the words 'believes', 'intends', 'expects', 'plans',
'seeks' and 'anticipates', and words of similar meaning, are forward-looking. By
their nature, all forward-looking statements involve risk and uncertainty
because they relate to future events and circumstances which are beyond
Prudential's control including among other things, UK domestic and global
economic and business conditions, market related risks such as fluctuations in
interest rates and exchange rates, and the performance of financial markets
generally; the policies and actions of regulatory authorities, the impact of
competition, inflation, and deflation; experience in particular with regard to
mortality and morbidity trends, lapse rates and policy renewal rates; the
timing, impact and other uncertainties of future acquisitions or combinations
within relevant industries; and the impact of changes in capital, solvency or
accounting standards, and tax and other legislation and regulations in the
jurisdictions in which Prudential and its affiliates operate. This may for
example result in changes to assumptions used for determining results of
operations or re-estimations of reserves for future policy benefits. As a
result, Prudential's actual future financial condition, performance and results
may differ materially from the plans, goals, and expectations set forth in
Prudential's forward-looking statements. Prudential undertakes no obligation to
update the forward-looking statements contained in this statement or any other
forward-looking statements it may make.
Schedule 1
PRUDENTIAL PLC - NEW BUSINESS - QUARTER 1 2004
TOTAL INSURANCE AND INVESTMENT NEW BUSINSS
UK & Europe US (1) Asia (1) Total
2004 Q1 2003 Q1 +/- 2004 2003 Q1 +/- 2004 Q1 2003 Q1 +/- (%) 2004 Q1 2003 Q1 +/-
YTD YTD (%) Q1 YTD YTD (%) YTD YTD YTD YTD (%)
£m £m £m £m £m £m £m £m
Total Insurance 1,482 1,322 12% 1,190 1,021 17% 264 203 30% 2,936 2,546 15%
Products
Total Investment 722 1,184 (39%) - - - 4,909 3,790 30% 5,631 4,974 13%
Products - Gross
Inflows (2)
--- --- --- --- --- --- --- --- --- --- --- ---
Group Total 2,204 2,506 (12%) 1,190 1,021 17% 5,173 3,993 30% 8,567 7,520 14%
--- --- --- --- --- --- --- --- --- --- --- ---
INSURANCE OPERATIONS
Single Regular Total Annual Equivalents (3)
2004 Q1 2003 Q1 +/- 2004 2003 Q1 +/- 2004 2003 Q1 +/- 2004 Q1 2003 Q1 +/-
YTD YTD (%) Q1 YTD YTD (%) Q1 YTD YTD (%) YTD YTD (%)
£m £m £m £m £m £m £m £m
UK Insurance Operations : (4)
Direct to Customer:
Individual Pensions 3 3 0% 2 2 0% 5 5 0% 2 2 0%
Life - With Profit Bond 3 4 (25%) - - - 3 4 (25%) 0 0 -
Life - Other - - - - 1 - - 1 - - 1 -
Individual Annuities 151 209 (28%) - - - 151 209 (28%) 15 21 (29%)
--- --- --- --- --- --- --- --- --- --- --- ---
Sub-Total 157 216 (27%) 2 3 (33%) 159 219 (27%) 18 25 (28%)
DWP Rebates 252 280 (10%) - - - 252 280 (10%) 25 28 (11%)
--- --- --- --- --- --- --- --- --- --- --- ---
Total 409 496 (18%) 2 3 (33%) 411 499 (18%) 43 53 (19%)
--- --- --- --- --- --- --- --- --- --- --- ---
Business to Business:
Corporate Pensions 40 50 (20%) 31 24 29% 71 74 (4%) 35 29 21%
Individual Annuities 48 62 (23%) - - - 48 62 (23%) 5 6 (17%)
Bulk Annuities 139 71 96% - - - 139 71 96% 14 7 100%
--- --- --- --- --- --- --- --- --- --- --- ---
Total 227 183 24% 31 24 29% 258 207 25% 54 42 29%
--- --- --- --- --- --- --- --- --- --- --- ---
Intermediated
Distribution :
Individual Pensions 16 17 (6%) 5 6 (17%) 21 23 (9%) 7 8 (13%)
Corporate Pensions 65 12 442% 2 2 0% 67 14 379% 9 3 200%
Life - With Profit Bond 54 108 (50%) - - - 54 108 (50%) 5 11 (55%)
Life - Other Bond 142 74 92% - - - 142 74 92% 14 7 100%
Life - Other - 1 - 1 8 (88%) 1 9 (89%) 1 8 (88%)
Individual Annuities 228 239 (5%) - - - 228 239 (5%) 23 24 (4%)
--- --- --- --- --- --- --- --- --- --- --- ---
Sub-Total 505 451 12% 8 16 (50%) 513 467 10% 59 61 (3%)
DWP Rebates 92 60 53% - - - 92 60 53% 9 6 50%
--- --- --- --- --- --- --- --- --- --- --- ---
Total 597 511 17% 8 16 (50%) 605 527 15% 68 67 1%
--- --- --- --- --- --- --- --- --- --- --- ---
Partnerships :
Life - With Profit Bond 1 26 (96%) - - - 1 26 (96%) 0 3 (100%)
Life - Other 164 51 222% - - - 164 51 222% 16 5 220%
Individual Annuities 23 - - - - - 23 - - 2 - -
--- --- --- --- --- --- --- --- --- --- --- ---
Total 188 77 144% - - - 188 77 144% 19 8 138%
--- --- --- --- --- --- --- --- --- --- --- ---
Total :
Individual Pensions 19 20 (5%) 7 8 (13%) 26 28 (7%) 9 10 (10%)
Corporate Pensions 105 62 69% 33 26 27% 138 88 57% 44 32 38%
Life - With Profit Bond 58 138 (58%) - - - 58 138 (58%) 6 14 (57%)
Life - Other Bond 142 74 92% - - - 142 74 92% 14 7 100%
Life - Other 164 52 215% 1 9 (89%) 165 61 170% 17 14 21%
Individual Annuities 450 510 (12%) - - - 450 510 (12%) 45 51 (12%)
Bulk Annuities 139 71 96% - - - 139 71 96% 14 7 100%
--- --- --- --- --- --- --- --- --- --- --- ---
Sub-Total 1,077 927 16% 41 43 (5%) 1,118 970 15% 149 136 10%
DWP Rebates 344 340 1% - - - 344 340 1% 34 34 0%
--- --- --- --- --- --- --- --- --- --- --- ---
Total UK Insurance 1,421 1,267 12% 41 43 (5%) 1,462 1,310 12% 183 170 8%
Operations
--- --- --- --- --- --- --- --- --- --- --- ---
European Insurance Operations :
(1)
Insurance Products 19 12 58% 1 - - 20 12 67% 3 1 200%
--- --- --- --- --- --- --- --- --- --- --- ---
Total European 19 12 58% 1 - - 20 12 67% 3 1 200%
Insurance Operations
--- --- --- --- --- --- --- --- --- --- --- ---
--- --- --- --- --- --- --- --- --- --- --- ---
Total UK & European 1,440 1,279 13% 42 43 (2%) 1,482 1,322 12% 186 171 9%
Insurance Operations
--- --- --- --- --- --- --- --- --- --- --- ---
US Insurance Operations : (1)
Fixed Annuities 332 532 (38%) - - - 332 532 (38%) 33 53 (38%)
Equity-Linked Indexed 71 44 61% - - - 71 44 61% 7 4 75%
Annuities
Variable Annuities 473 442 7% - - - 473 442 7% 47 44 7%
Life - - - 3 3 0% 3 3 0% 3 3 0%
--- --- --- --- --- --- --- --- --- --- --- ---
Sub-Total Retail 876 1,018 (14%) 3 3 0% 879 1,021 (14%) 91 105 (13%)
Guaranteed Investment 19 - - - - - 19 - - 2 - -
Contracts
GIC - Medium Term Note 292 - - - - - 292 - - 29 - -
--- --- --- --- --- --- --- --- --- --- --- ---
Total US Insurance 1,187 1,018 17% 3 3 0% 1,190 1,021 17% 122 105 16%
Operations
--- --- --- --- --- --- --- --- --- --- --- ---
Asian Insurance Operations :
(1)
China 3 1 200% 3 2 50% 6 3 100% 3 2 50%
Hong Kong 52 34 53% 16 14 14% 68 48 42% 21 17 24%
India (@26%) 1 2 (50%) 11 4 175% 12 6 100% 11 4 175%
Indonesia 13 3 333% 9 5 80% 22 8 175% 10 5 100%
Japan 3 3 0% 2 12 (83%) 5 15 (67%) 2 12 (83%)
Korea 18 - - 13 5 160% 31 5 520% 15 5 200%
Malaysia 2 3 (33%) 8 13 (38%) 10 16 (38%) 8 13 (38%)
Singapore 50 29 72% 10 12 (17%) 60 41 46% 15 15 0%
Taiwan 10 1 900% 30 47 (36%) 40 48 (17%) 31 47 (34%)
Other (5) 2 1 100% 8 12 (33%) 10 13 (23%) 8 12 (33%)
--- --- --- --- --- --- --- --- --- --- --- ---
Total Asian Insurance 154 77 100% 110 126 (13%) 264 203 30% 125 133 (6%)
Operations
--- --- --- --- --- --- --- --- --- --- --- ---
--- --- --- --- --- --- --- --- --- --- --- ---
Group Total 2,781 2,374 17% 155 172 (10%) 2,936 2,546 15% 433 409 6%
--- --- --- --- --- --- --- --- --- --- --- ---
Schedule 2
PRUDENTIAL PLC - NEW BUSINESS - QUARTER 1 2004
INVESTMENT OPERATIONS
Opening Gross Redemptions Net Other Market & Net Closing
FUM inflows inflows movements currency movement FUM
movements in FUM
2004
M&G
M&G branded retail 8,819 327 ( 321) 6 - 104 110 8,929
investment products
Prudential branded UK 1,325 30 ( 43) ( 13) - ( 4) ( 17) 1,308
retail investment
products (6)
M&G institutional (7) 14,048 365 ( 1,244) ( 879) 98 154 ( 627) 13,421
--- --- --- --- --- --- --- -------
Total M&G 24,192 722 ( 1,608) ( 886) 98 254 ( 534) 23,658
--- --- --- --- --- --- --- -------
Asia
India 2,049 2,143 ( 2,326) ( 183) ( 20) 39 ( 164) 1,885
Taiwan 2,666 1,890 ( 1,717) 173 - 46 219 2,885
Korea 933 618 ( 459) 159 ( 5) ( 24) 130 1,063
Other Mutual Fund 752 241 ( 97) 144 - 12 156 908
Operations
--- --- --- --- --- --- --- -------
Total Asian Mutual Fund 6,400 4,892 ( 4,599) 293 ( 25) 73 341 6,741
Operations
--- --- --- --- --- --- --- -------
Hong Kong MPF Products 196 17 ( 5) 12 - ( 2) 10 206
(8)
--- --- --- --- --- --- --- -------
Total Asian Investment 6,596 4,909 ( 4,604) 305 ( 25) 71 351 6,947
Operations
--- --- --- --- --- --- --- -------
--- --- --- --- --- --- --- -------
Total Investment 30,788 5,631 ( 6,212) ( 581) 73 325 ( 183) 30,605
Products
--- --- --- --- --- --- --- -------
Opening Gross Redemptions Net Other Market & Net Closing
FUM inflows inflows movements currency movement FUM
movements in FUM
2003
M&G
M&G branded retail 7,588 265 ( 197) 68 ( 14) ( 211) ( 157) 7,431
investment products (9)
Prudential branded UK 1,137 28 ( 42) ( 14) 18 ( 80) ( 76) 1,061
retail investment
products (6)
M&G institutional (4)(7) 11,559 891 ( 316) 575 - 51 626 12,185
--- --- --- --- --- --- --- -------
Total M&G 20,284 1,184 ( 555) 629 4 ( 240) 393 20,677
--- --- --- --- --- --- --- -------
Asia
India 1,372 1,540 ( 1,712) ( 172) ( 13) 32 ( 153) 1,219
Taiwan 2,425 1,716 ( 1,759) ( 43) - 40 ( 3) 2,422
Korea 993 415 ( 393) 22 - ( 45) ( 23) 970
Other Mutual Fund 306 101 ( 6) 95 - 10 105 411
Operations
--- --- --- --- --- --- --- -------
Total Asian Mutual Fund 5,096 3,772 ( 3,870) ( 98) ( 13) 37 ( 74) 5,022
Operations
--- --- --- --- --- --- --- -------
Hong Kong MPF Products 136 18 ( 3) 15 - - 15 151
(8)
--- --- --- --- --- --- --- -------
Total Asian Investment 5,232 3,790 ( 3,873) ( 83) ( 13) 37 ( 59) 5,173
Operations
--- --- --- --- --- --- --- -------
--- --- --- --- --- --- --- -------
Total Investment 25,516 4,974 ( 4,428) 546 ( 9) ( 203) 334 25,850
Products
--- --- --- --- --- --- --- -------
Opening Gross Redemptions Net Other Market & Net Closing
FUM inflows inflows movements currency movement FUM
movements in FUM
2004 movement relative to 2003
M&G
M&G branded retail 16% 23% (63%) (91%) - - - 20%
investment products
Prudential branded UK 17% 7% (2%) 7% - 95% 78% 23%
retail investment
products (6)
M&G institutional (4)(7) 22% (59%) (294%) - - 202% - 10%
--- --- --- --- --- --- --- -------
Total M&G 19% (39%) (190%) (241%) - - - 14%
--- --- --- --- --- --- --- -------
Asia
India 49% 39% (36%) (6%) (54%) 22% (7%) 55%
Taiwan 10% 10% 2% - - 15% - 19%
Korea (6%) 49% (17%) 623% - 47% - 10%
Other Mutual Fund 146% 139% (1517%) 52% - 20% 49% 121%
Operations
--- --- --- --- --- --- --- -------
Total Asian Mutual Fund 26% 30% (19%) - (92%) 97% - 34%
Operations
--- --- --- --- --- --- --- -------
Hong Kong MPF Products 44% (6%) (67%) (20%) - - (33%) 36%
(8)
--- --- --- --- --- --- --- -------
Total Asian Investment 26% 30% (19%) - (92%) 92% - 34%
Operations
--- --- --- --- --- --- --- -------
--- --- --- --- --- --- --- -------
Total Investment 21% 13% (40%) - - - - 18%
Products
--- --- --- --- --- --- --- -------
US (9)
2004 Q1 2003 Q1 +/- (%)
YTD YTD
£m £m
US Banking
Products
Total Deposit 616 673 (8%)
Liabilities
Retail Assets 641 753 (15%)
Curian Capital
External Funds 244 - -
under Management
Schedule 3
PRUDENTIAL PLC - NEW BUSINESS - QUARTER 1 2004 VERSUS QUARTER 4 2003
INSURANCE OPERATIONS
Single Regular Total Annual Equivalents (3)
Q1 2004 Q4 +/- Q1 Q4 +/- Q1 2004 Q4 +/- (%) Q1 2004 Q4 2003 +/-
2003 (%) 2004 2003 (%) 2003 (%)
£m £m £m £m £m £m £m £m
UK Insurance Operations : (4)
Direct to Customer:
Individual Pensions 3 1 200% 2 2 0% 5 3 67% 2 2 0%
Life - With Profit Bond 3 3 0% - 1 0% 3 4 (25%) 0 1 -
Individual Annuities 151 138 9% - - - 151 138 9% 15 14 7%
--- --- --- --- --- --- --- --- --- --- --- ---
Sub-Total 157 142 11% 2 3 (33%) 159 145 10% 18 17 6%
DWP Rebates 252 - - - - - 252 - - 25 - -
Total 409 142 188% 2 3 (33%) 411 145 183% 43 17 153%
--- --- --- --- --- --- --- --- --- --- --- ---
Business to Business:
Corporate Pensions 40 39 3% 31 30 3% 71 69 3% 35 34 3%
Individual Annuities 48 56 (14%) - - - 48 56 (14%) 5 6 (17%)
Bulk Annuities 139 98 42% - - - 139 98 42% 14 10 40%
--- --- --- --- --- --- --- --- --- --- --- ---
Total 227 193 18% 31 30 3% 258 223 16% 54 49 10%
--- --- --- --- --- --- --- --- --- --- --- ---
Intermediated Distribution :
Individual Pensions 16 11 45% 5 4 25% 21 15 40% 7 5 40%
Corporate Pensions 65 29 124% 2 1 100% 67 30 123% 9 4 125%
Life - With Profit Bond 54 162 (67%) - - - 54 162 (67%) 5 16 (69%)
Life - Other Bond 142 114 25% - - - 142 114 25% 14 11 27%
Life - Other - - - 1 2 (50%) 1 2 (50%) 1 2 (50%)
Individual Annuities 228 233 (2%) - - - 228 233 (2%) 23 23 0%
--- --- --- --- --- --- --- --- --- --- --- ---
Sub-Total 505 549 (8%) 8 7 14% 513 556 (8%) 59 62 (5%)
DWP Rebates 92 43 114% - - - 92 43 114% 9 4 125%
--- --- --- --- --- --- --- --- --- --- --- ---
Total 597 592 1% 8 7 14% 605 599 1% 68 66 3%
--- --- --- --- --- --- --- --- --- --- --- ---
Partnerships :
Life - With Profit Bond 1 1 0% - - - 1 1 0% 0 0 0%
Life - Other 164 69 138% - - - 164 69 138% 16 7 129%
Individual Annuities 23 23 0% - - - 23 23 0% 2 2 0%
--- --- --- --- --- --- --- --- --- --- --- ---
Total 188 93 102% - - - 188 93 102% 19 9 111%
--- --- --- --- --- --- --- --- --- --- --- ---
Total :
Individual Pensions 19 12 58% 7 6 17% 26 18 44% 9 7 29%
Corporate Pensions 105 68 54% 33 31 6% 138 99 39% 44 38 16%
Life - With Profit Bond 58 166 (65%) - 1 - 58 167 (65%) 6 18 (67%)
Life - Other Bond 142 114 25% - - - 142 114 25% 14 11 27%
Life - Other 164 69 138% 1 2 (50%) 165 71 132% 17 9 89%
Individual Annuities 450 450 0% - - - 450 450 0% 45 45 0%
Bulk Annuities 139 98 42% - - - 139 98 42% 14 10 40%
--- --- --- --- --- --- --- --- --- --- --- ---
Sub-Total 1,077 977 10% 41 40 3% 1,118 1,017 10% 149 138 8%
DWP Rebates 344 43 700% - - - 344 43 700% 34 4 750%
--- --- --- --- --- --- --- --- --- --- --- ---
Total UK Insurance 1,421 1,020 39% 41 40 3% 1,462 1,060 38% 183 142 29%
Operations
--- --- --- --- --- --- --- --- --- --- --- ---
European Insurance Operations :
(1)
Insurance Products 19 41 (54%) 1 - - 20 41 (51%) 3 4 (25%)
--- --- --- --- --- --- --- --- --- --- --- ---
Total European 19 41 (54%) 1 - - 20 41 (51%) 3 4 (25%)
Insurance Operations
--- --- --- --- --- --- --- --- --- --- --- ---
--- --- --- --- --- --- --- --- --- --- --- ---
Total UK & European 1,440 1,061 36% 42 40 5% 1,482 1,101 35% 186 146 27%
Insurance Operations
--- --- --- --- --- --- --- --- --- --- --- ---
US Insurance Operations : (10)
Fixed Annuities 332 222 50% - - - 332 222 50% 33 22 50%
Equity-Linked Indexed 71 71 0% - - - 71 71 0% 7 7 0%
Annuities
Variable Annuities 473 466 2% - - - 473 466 2% 47 47 0%
Life - - - 3 2 50% 3 2 50% 3 2 50%
--- --- --- --- --- --- --- --- --- --- --- ---
Sub-total Retail 876 759 15% 3 2 50% 879 761 16% 91 78 17%
Guaranteed Investment 19 ( 9) - - - - 19 ( 9) - 2 ( 1) -
Contracts
GIC - Medium Term Note 292 ( 4) - - - - 292 ( 4) - 29 ( 0) -
--- --- --- --- --- --- --- --- --- --- --- ---
Total US Insurance 1,187 746 59% 3 2 50% 1,190 748 59% 122 77 58%
Operations
--- --- --- --- --- --- --- --- --- --- --- ---
Asian Insurance Operations : (1)
China 3 2 50% 3 3 0% 6 5 20% 3 3 0%
Hong Kong 52 55 (5%) 16 28 (43%) 68 83 (18%) 21 34 (38%)
India (@26%) 1 1 0% 11 6 83% 12 7 71% 11 6 83%
Indonesia 13 11 18% 9 8 13% 22 19 16% 10 9 11%
Japan 3 2 50% 2 2 0% 5 4 25% 2 2 0%
Korea 18 14 29% 13 13 0% 31 27 15% 15 14 7%
Malaysia 2 2 0% 8 16 (50%) 10 18 (44%) 8 16 (50%)
Singapore 50 85 (41%) 10 17 (41%) 60 102 (41%) 15 26 (42%)
Taiwan 10 10 0% 30 38 (21%) 40 48 (17%) 31 39 (21%)
Other (5) 2 2 0% 8 15 (47%) 10 17 (41%) 8 15 (47%)
--- --- --- --- --- --- --- --- --- --- --- ---
Total Asian Insurance 154 184 (16%) 110 146 (25%) 264 330 (20%) 125 164 (24%)
Operations
--- --- --- --- --- --- --- --- --- --- --- ---
--- --- --- --- --- --- --- --- --- --- --- ---
Group Total 2,781 1,991 40% 155 188 (18%) 2,936 2,179 35% 433 387 12%
--- --- --- --- --- --- --- --- --- --- --- ---
INVESTMENT OPERATIONS
M&G (4)(7) Asia Mutual Funds Hong Kong MPF Products Total Investment
(8) Products
Q1 2004 Q4 +/- Q1 Q4 +/- Q1 2004 Q4 +/- (%) Q1 2004 Q4 2003 +/-
2003 (%) 2004 2003 (%) 2003 (%)
£m £m £m £m £m £m £m £m
Opening FUM 24,192 23,193 4% 6,400 6,316 1% 196 186 5% 30,788 29,696 4%
Gross 722 772 (6%) 4,892 4,832 1% 17 16 6% 5,631 5,620 0%
inflows
Less ( 1,608) ( 604) (166%) (4,599)(4,346) (6%) ( 5) ( 3) (67%) (6,212)(4,953) (25%)
redemptions
--- --- --- --- --- --- --- --- --- --- --- ---
Net flows ( 886) 168 (627%) 293 486 (40%) 12 13 (8%) ( 581) 667 (187%)
Other 98 - - ( 25) ( 38) 34% - - - 73 ( 38) 289%
movements
Market and 254 831 (69%) 73 ( 364) 120% ( 2) ( 3) 33% 325 463 (30%)
currency
movements
--- --- --- --- --- --- --- --- --- --- --- ---
Net ( 534) 999 (153%) 341 84 306% 10 10 0% ( 183) 1,092 (117%)
movement in
FUM
--- --- --- --- --- --- --- --- --- --- --- ---
Closing FUM 23,658 24,192 (2%) 6,741 6,400 5% 206 196 5% 30,605 30,788 (1%)
--- --- --- --- --- --- --- --- --- --- --- ---
Notes to Schedules :
(1) Insurance and investment new business for overseas operations has been calculated using
average exchange rates. The applicable rate for Jackson National Life is 1.84 (2003 - 1.60).
A comparison between the results on actual exchange rate and current exchange rate is given in the
notes to the press release.
(2) Represents cash received from sale of investment products.
(3) Annual Equivalents, calculated as regular new business contributions + 10% single new business
contributions, are subject to roundings.
(4) Investment mandates previously reported as UK Corporate Pensions in 2003 are reported as
M&G institutional funds under management. The impact of this is to reduce UK Corporate pensions
APE sales by £15m for the first quarter of 2003 and by £32m for the full year 2003.
(5) In Asia, 'Other' insurance operations include Thailand, The Philippines and Vietnam.
(6) Scottish Amicable and Prudential branded Investment Products.
(7) Balance includes segregated pensions fund business, private finance flows and M&G South Africa
institutional business. M&G institutional funds under management restated in Q2 2003 to include
funds managed on behalf of the Prudential Staff Pension Scheme previously categorised as internal
funds. Other movements reflect the net flows arising from the cash portion of a tactical asset
allocation fund managed in South Africa.
(8) Mandatory Provident Fund product sales in Hong Kong are included at Prudential's 36% interest
of the Hong Kong MPF operation.
(9) Balance sheet figures have been calculated at closing exchange rates.
(10) Sales are converted to sterling using the year to date average exchange
rate applicable at the time. The sterling results for individual quarters represent the difference
between the year to date reported sterling results at successive quarters and will include
foreign exchange movements from earlier periods.
This information is provided by RNS
The company news service from the London Stock Exchange
Friday, 31st May 2024
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